Driving Sustainable Growth: Enabling MSMEs for a Greener and Competitive Future

The 6th Annual Conference, titled "MSMEs in Viksit Bharat," organized by the India SME Forum on March 6, 2025, in New Delhi, featured a pivotal session focused on fostering sustainability within Micro, Small, and Medium Enterprises (MSMEs). The session, titled "Ecosystem & Enablers for Sustainable Competitiveness of MSMEs," brought together industry experts, policymakers, and business leaders to discuss practical and scalable strategies for integrating sustainable practices into MSME operations. The discussion emphasized that sustainability is no longer just an environmental responsibility but a strategic business advantage, helping MSMEs enhance competitiveness, reduce operational costs, drive innovation, and improve market positioning. 

Ms. Nupur Garg highlighted the significance of research and market analysis in adopting sustainable business strategies, stating, "For any business to undertake something new—whether it’s green certification, ESG compliance, or SDG alignment—it must make business sense. MSMEs must research market demand and assess the impact of sustainable practices to identify viable opportunities."  She further cited a National Stock Exchange study, which revealed that companies implementing ESG (Environmental, Social, and Governance) frameworks saw a profitability increase within three to five years, reinforcing that sustainability investments offer measurable financial returns. 

Mr. Vinamra Mishra added that "Many MSMEs are still unaware of ESG compliance, but sustainability reporting is becoming a global benchmark. Adopting these practices early will future-proof businesses and improve access to finance and global markets." 

A key highlight was the transformative potential of digital technologies, such as Artificial Intelligence (AI), Internet of Things (IoT), and cloud computing, in promoting sustainability by optimizing resource utilization, reducing waste and emissions, and enhancing supply chain efficiency. 

However, Ms. Vinita Hariharan stressed that despite government efforts, technology adoption among MSMEs remains a challenge, stating, "While initiatives like Lean Manufacturing, ZED (Zero Effect, Zero Defect), and Digital MSME exist, penetration at the last mile is still limited. Mobile penetration in India presents a unique opportunity to digitally transform MSMEs and make them more competitive." 

The panelists also underscored the need for financial incentives, subsidies, and easier access to green finance to encourage MSMEs to invest in sustainable solutions, with Mr. Dhanendra Kumar highlighting the role of Intellectual Property (IP) protection in fostering innovation, stating, "MSMEs need better awareness and access to government-backed IP registration support. Protecting their innovations is crucial for maintaining a competitive edge, not just in India but globally." The session further emphasized that government-backed green finance schemes, carbon credit programs, and ESG-linked funding opportunities must be made more accessible to MSMEs. A recurring theme throughout the discussion was the need for collaboration between key stakeholders—including government bodies, industry associations, research institutions, and MSMEs themselves—to create an enabling ecosystem where sustainable practices can thrive. Large corporations were encouraged to mentor smaller businesses, providing them with access to knowledge, resources, and international best practices. The panelists concluded that sustainability is not an option but a necessity for MSMEs in India's journey towards Viksit Bharat 2047, and by embracing sustainable practices, MSMEs can unlock new growth opportunities, meet evolving regulatory and consumer expectations, and improve profitability while reducing environmental impact. The session ended with a strong call to action, urging MSMEs to proactively explore ESG frameworks, leverage digital solutions, and seek government incentives to drive green growth. 

As Mr. Vinamra Mishra aptly summarized, "Sustainability is not just about compliance; it is about business survival and success in a competitive global market. MSMEs must take proactive steps today to ensure they thrive in the future." With the right ecosystem, policy support, and industry collaboration, India’s MSMEs can lead the way in sustainable and competitive growth, contributing meaningfully to the nation’s economic and environmental progress.